Total sales increased 7% in the first six months of the year, amid a challenging global scenario. Half of the company’s revenues came from premium brands.
August 17th – Viña Concha y Toro reported an 8.3% increase in first-half earnings, after showing a 7% rise in revenues, amid a complex global scenario.
“In 2022 we have faced a highly complex and uncertain global productive and macroeconomic environment, which has challenged us as a company to adapt and respond to the new logistical and commercial context in our quest to generate sustained value over time,” said Eduardo Guilisasti, general manager of the holding company.
Faced with the scenario of strong inflationary pressures in the world and their impact on the cost of dry goods, freight and labor, the company carried out three main actions: price increases throughout the portfolio, focusing on our profitability objectives, the search for effective cost management and maintaining the company’s financial strength.
Precisely the price increase applied, together with the favorable exchange rate effect, explained the increase in revenues, despite the 9.7% drop in volume.
By brand, the Principal and Invest categories – the priority premium brands- saw an increase of 4.8% in value and a decrease of 11.4% in volume. Consequently, the company showed a stable sales mix compared to the same half of 2021, in other words half (49.4%) of the holding company’s total revenues came from Premium categories. It even rose to 50.9% in the second quarter.
By markets, the United Kingdom accounted for 24.5% of sales, followed by the United States with 15.4% and Chile with 14.6%. Further behind are Brazil and Mexico with 9.2% and 4.9%, respectively.
Historic Investment
“In spite of the challenging situation we are going through, our conviction in the solid fundamentals of the strategy and the company remains intact,” said Guilisasti.
The company has continued to invest in marketing to maintain the strength of its brands among consumers, and is also making the largest investment in its history (around Ch$80 billion) in estates, wine cellars and plants, in order to sustain future growth with capacity and productivity.
